Jakarta – The newly formed National Awakening Party (PKB) has nominated popular Moslem leader Abdurrahman "Gus Dur" Wahid as its candidate for the presidency at the upcoming elections, a newspaper said Friday.

"This is serious. The PKB is nominating Gus Dur," PKB executive Muhaimin Iskandar was quoted by the Jakarta Post daily as saying.

Gus Dur, 58, established the PKB last year after Indonesian President B.J. Habibie relaxed Suharto-era political laws which restricted political parties to three.

PKB Secretary General Said Aqiel Siradj confirmed the nomination and added that "it would be better if the next president is from the PKB."

Iskandar said Gus Dur, who heads the 30-million strong Moslem group Nadhlatul Ulama, would be the ideal candidate for Indonesia's future leader as the country struggles to restore economic and political stability.

"Such an administration requires a leader with the ability to forge reconciliation; a professional who enjoys the support of the masses and the international world. Such support is needed for Indonesia to heal its economy," he added.

Only one other party has nominated its presidential candidate. The People's Mandate Party (PAN) has nominated its chairman, leading Moslem reformist Amien Rais.